Cash Flow Example 1 calculate the net cashflow

1. Year 1 2 3 4 5 6 Incomes 500 820 900 1 600 1 700 Investments 1 800 800 Operational costs 120 160 165 210 220 Net cashflow -1 800 380 690 -65 1 390 1 480 The first year is a pure investment year. We see that there is no income and there is just an investment of 1800 currency units. Project is run from year 2 until year 6. you can see this from following operational costs and incomes. Net cash flow which is income minus investments and operational costs, becomes positive in the second year. In the fourth year, cash flow is negative. This is because of new investments carried out in this year. Incomes in the year 5 and 6 increase considerably as the result of investments in year 4. In this example, cash flow, becomes positive and negative several times. In this course, we will focus on projects with one shift. Cash Flow Example 1calculate the net cashflow Http://www.prosjektledelse.ntnu.no